A lender should prefer to lend at a rate of 10% with semiannual compounding, but a borrower would prefer a loan with a rate of 10%, annual compounding. True or false?

It is true, A rate of 10% with semiannual compounding should prefer.

Explanation:

The interest rate is the amount of charge a lender is used for assets. It is typically an annual basis or annual percentage,

The assets include

If a borrower is at high risk, they will be charged higher. It means the borrower will have to pay the original loan of the bank.

A leader prefers the compound interest method that the borrower pays.

A leader should prefer a semiannual (twice a year) rate.

The borrower prefers a loan with a rate of 10% annually.

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